The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-28
BOTTOM FACTS ABOUT A RAILWAY.
c. P. Huntington Tells How Union Pacific Was
Built-Heayy Cost Of Explaining" Things.

NEW YORK. April 27.-The Pacific railroad
congressional investigating committee met to-
day at Its Office in Wall street. Ex-Governor
Robert f. Pattison. of Pennsylvania, swore c.
p Huntington. who was the first witness. The
examination was conducted by E. Ellery Ander-
son. The witness stated that he had been con-
rected with the road since its Organization in
1861. His particular business was to attend to
financial matters. The main Office was in San
Francisco where the directors meetings took
place. Himself and another vice president lived
in New York, but the company never had kept
set of books here. They commenced building
the road with small contractors, and as they did
not get along very we'll with the construction,
the contract was let to Mr. Croker. This was
within about one year of the passage of the act
OF 1862 The money for construction was pro-
vided for by contribution. From the time the
ton, prices of material went up from 200 to 800
per cent Iron was $3.50 per ton locomotives
cost $1,000 and before they got through,
much as $4,000 was paid They paid
in gold for all supplies, and that was how they
came to a standstili for funds to continue its
construction. Mr.. Garrison and Mr.. Mills were
asked to join in the enterprise. but they could
not see their way clear to a safe investment.
At this time Senator Stanford and Mr.. Crocker
were owners of most of the stock of the con-
tract and finance company which was organized
to continue the building of the road The wit
ness then described the difficulties under which
they labored before the different branches which
now constitute the main line were put through.
In the '70s they purchased steamboats, to run in
connection with the road from San Francisco
and other points on the coast They were part
of the purchase of the California Pacific, which
they bought. Then the steamers were sold to
the Central Pacific. to be used ferry boats.
He did not know how the transfer came about,
the price paid. or what effect it had on the mar
ket price of the stock of the road he was inter-
ested in. The Central Pacific, he thought,
was operating these steamers to-day. There
was not much profit in them. The California e.
Oregon was consolidated with the Central Pa
cifc The California & Oregon ran from Port
land, Ore. to San francisco, and was an Ore
gon corporation. The construction was COM
menced in 1868 The land grant was made in
1866. The consolidation was effected about 1870.
After the consolidation the Pacific Improvement
Company went on with the construction OF the
California & Oregon to Redding. Mr.. Hunting
ton thought that he had told all about the con-
struction Of the road from the beginning up to
to-day Resuming, he stated that much OF the
stock OF the company was sent to the contract
and finance company before the act of 1862. and
after that 1t his impression that there was
not any stock issued. The law required that 10
per cent. should be put up before they could or
ganze. The contracts were paid partly in
stock and partly in cash. The cash was pro-
duced by individuals They were not paid by
money subscribed for stock.
In the afternoon Mr.. Huntington stated that
the comnanys lawyer at Washington was paid
$4,000 per year salary. and allowed from
$50. 900 to 900 to explain" to people in Wash
ington that it was to the advantage of the pub
lie, and not the company he was interested in,
that the company's schemes should be approved
in Congress. General Franchol was their couu.
sci for many years. Their counsel was never
asked what he did with the money, was he
called upon to produce vouchers. but if he asked
for $40. 600 he could have it. because the witness
knew it would be put to a good use. Mr.. Hunt
ipgton told the commissioners they had no idea
how many people there were in Washing
on to whom it was necessary to explain"
The commissioners expressed surprise that no
vouchers were taken for such large expenditures.
The balance-sheets published in the annual
statements of the company were produced, and
Mr.. Huntington was asked to explain an item
of $63. 900 in the statement of 1873 for legal ex
penseS- The witness said that he could only
offer the. same explanation he had already given
that the money was used in explaining
things at Washington. The company had to
educate" the people at Washington-they had
to explain" The witness was then asked tc
give an illustration He said: you want tc
get Richard Roe. who represents certain dis
trict, to do something. Well. you cannot speak
to him. You send into his distric,
and get John Doe to tell Richard
very thing for that district" The witness
denied that money had ever been given to Con
gressmen to influence them in favor of the com
| pany, but he admitted that the company's coun
| sci had used more money than usual while Con
| gress sitting. Some of the money might
| have been explained" in champagne dinners OF
| cigars. What the witness meant by seducat
! ing" was that the company had to show that the
companys object scheme would be more fol
the benefit of the public than of the company
| They had to explain" to the people at Wash
/ ington that it was better to build their line OF
solid rock in the Bay of San Francisco than i
| was to build on piles. Moral influence had to b,
brought to bear the Washington people
| The witness then questioned to the leas,
| of the Central Pacific to the Southern Pacific
/ and he admitted that he was interested in boil
companies, and had recommended the consolida
| ton.